Canada's dollar falls to its lowest level since 20 July


Canadian dollar weakens 0.6% against the greenback Touches its weakest level since 20 July at 1.2771 Price of U.S. oil falls 3.1% - Canadian bond yields ease across a flatter curve By Fergal Smith TORONTO, Aug 19 – The Canadian dollar fell to a nearly one-month low against its broadly stronger U.S. counterpart on Thursday as concerns about rising global coronavirus cases and potential cuts in stimulus by the Fed weighed on investors sentiment The loonie was trading 0.6% lower at 1.2745 to the price of 78.44 currency notes, or 78.43 U.S. cents, extending a string of losses since the start of the week. It touched its weakest intraday mark since July 20 at 1.2771. The fragile commodities and risk backdrop is likely to continue to weigh on the loonie in near term, strategists at Scotiabank, including Shaun Osborne, said in a note. Stocks globally fell, bond yields fell and the safe-haven US dollar experienced a nine-month peak, while oil, one of Canada's major exports, dropped to its lowest since May. U.S. crude prices fell to $63.42 a barrel, down 3.1% in the market today. Circulation of the Delta variant in areas of low vaccination is driving transmission of COVID - 19, the World Health Organization said on Wednesday. Also on Wednesday, the release of minutes from the Federal Reserve policy meeting last month showed officials that they felt the u.s. unemployment benchmark could be reached this year for decreasing support to the economy. A report from payroll services provider ADP showed that Canada added 221,300 jobs in July as the opening of the economy led to hiring in the leisure and hospitality sector as well as trade, transportation and utilities. Canadian Retail Sales Report for June is due on Friday. The retail sales data may help to differentiate the CAD from its G-10 peers amid a relatively constant economic recovery and strong delta-related hospitalizations, the Scotiabank strategists said. The yields of Canadian government bonds were low across a flatter curve, this time tracking the movement in U.S. Treasuries. The overall output of the 10 year period fell 2.1 basis points to 1.134%